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What is a non-recourse pre-settlement loan?

Non-recourse loans are loans that are not collateralized (I will explain this in a minute). When a loan is non-recourse, it means the lender cannot come after you if you default on the payment. This is different from a collateralized recourse loan, which means you have put up some type of collateral to obtain the loan. Now you may be thinking that your case is considered collateral. You’re correct, but since your case has not matured or settled and is merely a potential settlement, it is not considered actual collateral. Some may consider this fictitious collateral.
Why are non-recourse loans important? When a loan is considered non-recourse, it means that the party lending you the money, or the lender, cannot pursue a claim against you should you default. Thus, if your case does not settle or if you go to trial and have a defense verdict you will NOT be responsible for the loan. This gives you the ability to borrow without worrying what the ultimate resolution of the case will be.

However, you always want to make sure you borrow an amount that is reasonable. Most of the time loan companies will lend you at a very high interest rate. Thus, you will be forced to pay back the principal amount along with a significant amount of interest. What’s worse is that many of these companies have hidden fees that will add up to a significant portion of your settlement. We are a transparent company. All fees and costs are made available to the client and we make sure to charge a fair and reasonable rate.